This document provides information on a course titled "Introduction to Digital Currencies" that introduces students to decentralized digital currencies like Bitcoin. The 10 ECTS course is offered at the University of Nicosia and covers the history and technology of cryptocurrencies, conducting transactions, alternative applications of blockchain, interactions with existing financial systems, and frameworks for regulation. Coursework includes lectures, seminars, assignments, quizzes and a project, and recommended reading includes the book "Mastering Bitcoin".

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DFIN-511 Introduction to Digital Currencies
University of Nicosia, Cyprus
Course Code Course Title ECTS Credits
DFIN-511 Introduction to Digital
Currencies
10
Department Semester Prerequisites
School of Business
and Computer
Science
Fall/Spring/Summer None
Type of Course Field Language of Instruction
Required Digital Currencies English
Level of Course Year of Study Lecturer(s)
2nd Cycle 1st Andreas Antonopoulos
Antonis Polemitis
Dmitry Apraksin
Mode of Delivery Work Placement Co-requisites
Distance learning N/A None
Objectives of the Course:
The course is designed to provide an introductory understanding of
decentralized digital currencies (cryptocurrencies) such as bitcoin. In
particular, the course will survey the theory and principles by which
cryptocurrencies operate, practical examples of basic cryptocurrency
transactions, the likely interaction of cryptocurrencies with the banking,
financial, legal and regulatory systems, and how cryptocurrencies could be
viewed within a framework of innovation and development.
The course will consist of four general topics:
1. Theoretical introduction to digital currencies: This will include the
history of digital currencies, the invention of decentralized consensus
through proof-of-work, and a technical overview of cryptographic
currencies such as bitcoin, as well as alternative/advanced uses of the
blockchain.
2. Practical introduction to digital currencies: This will include practical,
introductory exercises in utilizing and constructing cryptocurrency
transactions.
3. Banking, financial and regulatory implications of digital currencies:
Overview of how cryptocurrencies map to the existing monetary and
banking system and possible approaches to regulation and

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development.
4. Innovation & development: How cryptocurrencies can be viewed
through innovation frameworks and what possibilities exist for
cryptocurrencies to accelerate development.
Learning Outcomes:
After completion of the course students are expected to be able to:
Understand the technology components of blockchain-based digital
currencies, the process of currency issuance, proof-of-work, consensus
and distributed ledger
Demonstrate an understanding of digital currencies and be able to
conduct transactions from a digital currency wallet
Understand more advanced uses of the blockchain such as escrow
services, asset registration, attestation and smart contracts
Understand alternatives to bitcoin, such as alt-coins, IOU-based
systems and Ethereum
Understand what parallels and differences cryptocurrencies have with
the existing monetary and banking systems
Understand likely frameworks for regulating cryptocurrencies
Be able to place cryptocurrencies in the context of disruptive
innovations and understand their potential for growth or development
Course Contents:
1. A brief history of money: From sea shells to cryptocurrency
2. The Byzantine’ General’s Problem: What is it, why is it important in
computing, and solutions over time
3. Basics of Cryptocurrency: Public/private keys, transactions, mining
4. Bitcoin in practice – Part 1: Bitcoinqt, online wallets, sending/receiving,
paper wallets/cold storage
5. Bitcoin in practice – Part 2: Bitcoind, constructing a transaction, mining
6. Alternative uses of the blockchain: Colored coins, meta-coins, asset
registration, attestation, smart contracts, political speech
7. Alternatives to Bitcoin: Alt-coins; Ripple / IOU Based Systems, Ethereum
8. Cryptocurrency and Central Banking: Applying the concepts of money
supply, fractional reserve banking, monetary policy, fiat/commodity money
to cryptocurrencies
9. Cryptocurrency and Financial Institutions: Applying the concepts of
exchanges, banks, money transmitters and capital markets to
cryptocurrencies
10.Regulatory and tax treatment: Potential regulatory and legal frameworks
for cryptocurrencies, including classification/recognition, AML, KYC,
consumer protection, and taxation
11.Cryptocurrency and innovation: Applying framework of the innovators

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dilemma, and competitive strategy to cryptocurrencies
12.Cryptocurrency and the developing world: Understanding
cryptocurrencies’ potential impact on microfinance, infrastructure
development, and non-traditional payment systems (M-Pesa)
Learning Activities and Teaching Methods:
Lectures, Seminars, Assignments
Assessment Methods:
Online quizzes and problem sets, Projects
Required Textbooks/Reading:
Authors Title Publisher Year ISBN
Andreas
Antonopoulos
Mastering Bitcoin O’Reilly
Publishing
2014
Recommended Textbooks/Reading:
Authors Title Publisher Year ISBN
Satoshi
Nakamoto
Bitcoin: A Peer-to-Peer
Electronic Cash System
2009
Selected Online Readings:
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/...moneycreation.pd
f
http://dealbook.nytimes.com/2014/01/21/why-bitcoin-matters/
http://www.usv.com/posts/bitcoin-as-protocol
http://startupboy.com/2013/11/07/bitcoin-the-internet-of-money/
http://startupboy.com/2014/03/09/the-bitcoin-model-for-crowdfunding/
http://mercatus.org/sites/default/files/Brito_BitcoinPrimer_embargoed.pdf
http://www.hmrc.gov.uk/briefs/vat/brief0914.htm
http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html
http://www.scribd.com/doc/212058352/Bit-Coin
http://bitcoinmagazine.com/9671/ethereum-next-generation-cryptocurrency-decentralized-
application-platform/
http://www.andrew.cmu.edu/course/15-
749/READINGS/required/resilience/lamport82.pdf